Updated Version 2 - Due to production capacity delays, Nebius lowers its revenue forecast for 2026, stock price plummets

Full article restated

Reuters, November 12 - Artificial intelligence cloud computing company Nebius (NBIS.O) said on Thursday that due to delays in third-party capacity expansion, its 2026 revenue will be at the lower end of its previously forecast range. Meanwhile, an upward revision of capital expenditure expectations led its shares to fall nearly 12% in premarket trading.

Previously, boosted by strong results from new cloud services competitor CoreWeave (CRWV.O), Nebius shares had surged 15% on Wednesday; but as investors weighed Nebius' higher capital expenditures and delayed capacity ramp-up, the shares on Thursday gave back part of Wednesday's gains.

Nebius stated that some of the third-party capacity originally scheduled to come online this year has now been delayed until the first half of 2027, but added that the related contracts remain valid.

Due to this delay, the Amsterdam-based company said that the timeline for achieving its annualized revenue target of over $7 billion will be pushed back approximately two months from the original plan.

Nevertheless, the company raised its full-year capital expenditure forecast from the previous $20 billion–$25 billion to about $27 billion. According to data compiled by London Stock Exchange Group (LSEG), analysts had previously expected annual spending to average $22 billion.

Nebius expects next year’s spending to be in the range of $40 billion to $45 billion.

To mitigate investors’ growing concerns over neoclouds financing risk, the company said that about 75% to 85% of its 2027 spending will be covered by customer prepayments and asset-backed financing from its existing contracts.

The company expects 2027 sales to be between $12 billion and $13 billion, and said it aims to achieve pre-tax break-even by the end of next year.

The company reported quarterly revenue of $981 million as of September 30, exceeding the expected $907.5 million.

Nebius’ results came shortly after CoreWeave’s strong performance, as the latter on Tuesday raised its annual revenue forecast and announced plans to achieve adjusted profitability by the first half of 2028.

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